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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Concrete Pumping Holdings (BBCP). BBCP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.67, while its industry has an average P/E of 29.08. Over the past 52 weeks, BBCP's Forward P/E has been as high as 22.24 and as low as 9.07, with a median of 14.83.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBCP has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.84.
Finally, we should also recognize that BBCP has a P/CF ratio of 4.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.46. Over the past year, BBCP's P/CF has been as high as 6.45 and as low as 3.68, with a median of 4.64.
These are just a handful of the figures considered in Concrete Pumping Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBCP is an impressive value stock right now.
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CONCRETE PUMPING HOLDINGS, INC. (BBCP) : Free Stock Analysis Report